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Household Volatility, Household Debt and the Great Moderation

Author

Listed:
  • Marina Pavan

    (The Geary Institute, University College Dublin)

  • Matteo Iacoviello

    (Boston College)

Abstract

productivity is lower, as in the data. Quantitatively, larger idiosyncratic shocks can explain: (1) 5 percent of the reduction in total GDP volatility since the mid 1980s; (2) more than one half of the reduction in the volatility of household investment; (3) the sharp decline in the correlation between household debt and economic activity.

Suggested Citation

  • Marina Pavan & Matteo Iacoviello, 2008. "Household Volatility, Household Debt and the Great Moderation," 2008 Meeting Papers 903, Society for Economic Dynamics.
    • Handle: RePEc:red:sed008:903
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    References listed on IDEAS

    as
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